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TRANSCRIPT
Introduction: Real Estate Sector
The backbone of Indian Economy
Contributes to 8.5% of total GDP
Growth rate to the tune of 30%
Estimated to be worth USD 90 billion
Vital Catalysts are:• Economic and political stability • Stable economic parameters like
inflation, CAD, imports etc.
Role of Real Estate
Real Estate
4th largest employment generating industry;
specially for BPL
Employs 35 mn. Low and medium skilled labour.
Contributes to GDP and Capital formation.
More than 300 linked industries like steel,
transport, cement etc.Attracts FDI
Contributes directly to manufacturing sector.
Residential segment commands max market
share
Policies to boost Real Estate in 2015
Amendments •In the provisions of section 269SS and
269T of the Income-tax Act to curb black money in real estate sector.
Introduction•Of new Benami Transactions (Prohibition)
Bill in current session of the Parliament.•Of Regulatory Reform Law for
Infrastructure.
Other New Policies•60 million housing units in rural and urban
areas under Housing for All 2022.•Rationalisation of the Capital Gains Tax for
REITs and InvITs, subject to payment of STT.
PAN mandatory for any purchase or sale of
assets exceeding INR 1 Lakh.
Corporate Tax to be reduced from 30% to
25% in the next 4 years.
Increase in Service Tax from 12.36% to 14%.
GST effective from April 1st 2016.
Allocation of INR 1,200 crore for DMIC
Corridor.
Allocation of INR 150 crores to create world class IT hub in India.
Policies to boost Real Estate in 2015
•Increase in transport allowance exemption from INR 800 to INR 1,600 per month.
•The limit on home loan interest has been raised from Rs 1.5 lakh to Rs 2 lakh.
•Increase in investment in infrastructure by INR 70,000 cr.•(PPP) model of Infrastructure to be revitalized and realigned.•14 regulatory permissions to be provided at 1 source.
•Reduction in minimum capitalisation for FDI investment from $10 million to $5 million.
•To set up expert committee for legislation on single-window clearance.
•National Infra Fund, to be established and Rs 20,000 cr to be allocated.
•Rural infrastructure development fund to be set up worth Rs 25,000 cr.
•Pass through on Rental Income arising from real estate assets directly held by REITs.
•Extension of the external commercial borrowing (ECB) scheme to the entire Indian Real Estate Sector.
•Allowed FDI of up to 100% under the automatic route in real estate projects.
•Promotion of investment from NRI and PIO communities.
Trends in 2015
Less pressure on Rupee
Banks lowering interest rates
Incentives for infrastructure
financing by RBICreation of REITs
Make in India Campaign
FDI allowed in Construction sector 100 smart cities
Affordable and small houses (800-1200 sq
ft)
Preference of regular amenities over
luxury.
‘Tax pass through’ status for Real Estate
Investment Trusts (REITs)
High demand for ready to move in
properties in Bangalore and NCR.
Increase in the availability of resale
properties.
Growth of the eastern suburbs.
Development of heritage cities to boost tourism.
Trends in 2015
Demand of properties in the South India region specially
Bangalore and Chennai.Less threat of inflation
Stabilized property prices and good deals by
developers to reduce their inventory.
GDP growth rate is expected to reach 6.5% A year for end users
Location has been found to be a more important
influencer for buying homes than price
A demographic transition wherein 40% of the urban population is of the age group
15-32 years.
Increase in demand in the real estate sector and economic gains for country because of
the high disposable income of the new demographic.
Why Bangalore?
Life
styl
e Pleasant climate throughout the year.Demographically diverse citySecond-fastest growing major metropolis in India.
Care
er O
ppor
tuni
ties Home to many
educational and research institutions in India like IISC, IIMB, NLSIU, NIMHANS etc.Numerous state-owned aerospace and defence organisations, such as Bharat Electronics, Hal, ISRO etc
IT H
ub Infosys and Wipro headquartered in the city.GDP of $83 billion Base of several corporate organizations who are now looking for expansion.
Real Estate Scenario in Bangalore
Result: High demand of
Housing and Commercial
space
High disposable
incomes
Establishment of IT parks
Increased focus on land
and infrastructure development
Increasing rate of
migration to the cities
Growing population
Growth of the IT and the BPO sector has led to a real estate boom
in Bangalore.
Population of around 10 million and still
growing.
Max demand for housing from the IT/ITES sector, Biotech and Aerospace
Engg. sectors
Expected to see the highest demand for office space in 2015
(at approximately 11.1 msf).
Third-largest hub for High Net worth
Individuals (HNIs).
Real Estate Scenario in Bangalore
Currently positioned at 17th position according to a report by PwC, titled
'Emerging Trends in Real Estate Asia Pacific 2015’
Indicating that there has been an increase in investment in real estate by investors.
Residential Areas in Bangalore
Marathahalli, Electronic City, Thanisandra, Hennur Road,
Outer Ring Road
(ORR),Sarjapur Road and
North Bangalore.
Budget homes in Kanakapura
Road, HSR layout,
Bannerghata Road
High-end residential
apartments in CBD, SBD,
North Bangalore and
Outer Ring Road sub-markets.
Projects with over 1000
units or above in regions like Devanahalli and Hoskote in Bangalore.
Budget homes in the region from Sarjapur
road to Whitefield.
Luxury apartments in
Whitefield. Availability of
resale properties.
Real Estate Scenario in Bangalore
Advantages of these Residential Areas
Proximity to IT Corridor and
workplace resulting in easy
conveyance.
These areas are undergoing
robust phase of development.
Availability of Budget and
luxury homes. Availability of
basic amenities and securities.
Govt boosting infrastructure at these location
and has proposed a signal free
corridor to drive growth from CBD
to Whitefield.
Capital appreciation of
10-15% in Whitefield area in
the next few years.
WeOwn.in: Owning property is now Easy! •Regis
tered in March 2012
•We help users buy real estate - apartment, villa, plots or farm house, at genuinely low prices AND with no charge or fee.
WeOwn.in•Niran
jan Rao R
•Vishalavat Shreedhar
Founders
•Quality
•Integrity
Values
• Customized solutions, working alongside our customers in identifying the right property and helping them make the right decision.
Unbiased Opinions
• Negotiation with the seller on their behalf to avail below market rates and help save our customers’ money depending on factors like stage of construction, inventory with the builder, market demand, etc.
Help Negotiate
• Verified listings of home loan providers, legal experts, Property Insurance companies, Architects, Interior decorators, Carpenters, Electricians, Modular kitchen makers, Lighting experts and retailers, etc.
End to End Support
How can we HELP?
We are on the buyers’ side and we do not charge a fee or commission to assist our customers.
This consumer-centric outlook is the guiding principle of our organization which helps us differentiate from any agent/broker out there.
We have been able to save our users anywhere between 1% and 10%, on the home of their choice.
So, once a client has made up their mind to buy a home, we could pretty much help them with everything, until the time they settle down in their new home.
We provide them with end to end support i.e. “From HOUSE to HOUSEWARMING”.
We are the Buyer’s Agent
Send us a mail at [email protected].
OR Call us on +91 80500 60099
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